Glossary · Your money in the deal
In short
A specific method allowing you to use your 401(k) or other retirement funds to finance a business purchase without incurring taxes or penalties. It's a complex but powerful equity injection strategy.
This strategy involves setting up a new C-corporation and a 401(k) plan, then rolling over your existing retirement funds into the new plan. The new 401(k) then invests in your C-corp, providing the equity injection. Ensure strict IRS compliance and consult specialists for this approach.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
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